Example: Using the comparison method to obtain beta and r with taxes Recall from Example 3-16 that Marriott identified three comparison firms for its restaurant division PE Church's Chicken0.75 1.00 1.08 0.004 2.300 0.210 0.096 7 700 0.790 McDonald's Wendy's Assume that the risk-free rate is 4%, the market risk premium is 8.4%, the corporate tax rate is 34%, the CAPM holds, comparison firms' debt is risk free, and each provides an equally good comparison Estimate the unlevered cost of capital for Marriott's restaurant division